AI Contract Analysis: Identify Risks, Obligations, and Gaps

Key Takeaways

Hi, Budy here, founder of Contraco. Today I'm announcing our new AI analysis feature. So, Contraco helps you not only extract data from your contracts with AI, but it also is going to help you better run your business by guiding you about the contents of that contract. It deserves to be said, no model training is happening when you're extracting information with us. So, you can rest assured that your data is safe. Let's walk through how it works. I already uploaded a contract and on the contract viewer you can open an AI analysis tab. Let's go over it together. So this is a web agency master service agreement. It's going to provide a summary and then it's going to identify some key risks to you. For example, it's going to say there's no explicit termination for cause. So if something bad is happening, well uh there's no um definition of how to resolve that. Then it's going to take a look at dated obligations. So which obligations exist which have a specific date or that might be recurring. In this case um something needs to be done by a specific date. Trigger deadlines. So these are things that work like if this then that in this particular case um fees need to be paid as outlined in the scope of work. And so what's the trigger? The invoice date and then it needs to be paid within 15 days. Next we look at general obligations for you and your counterparty. So basically what things are you obliged to do under the contract separate from warranties and guarantees. Our model also looks for risk allocation. In other words, how is risk being shifted between the parties? Maybe it's being capped. Maybe um it's being limited in particular cases. So it's being flagged. And in each instance, you're also going to get a badge for the severity of the thing that the model has found on your behalf. Next, we spot gaps and ambiguities. What this does is it looks for things that are blatantly or maybe intentionally missing from your contract and are often good to be aware of or potentially to renegotiate or add into a new version. Additionally, one of the things that we do is we look for deviations from standard contract norms. In this case, none were picked up, but if they were, they might be things like maybe there's a very short notice period that is out of the ordinary. Then our model is going to report to you a standard and a deviation. And this is going to help you better steer your business. You can view this from within the contract viewer and the contract editor. And whenever you re-trigger an AI extraction, the AI analysis is going to update, too. We hope this is going to give you more control over your contract. And we're excited to see what you do with this.